QUESTION 1 Net compleeMarked out of 2.00 qion Table 1 Present Value of Single Amount Interest Rate 0.06 Time Value of Money: Basics Using the equetions and tables in Appendix 25A of this chepter, determine the answers to each of the following Independens situecions Round answers to the nearest whole number. Period 0.01 0.02 0.03 0.04 0.05 0.07 0.08 0.09 0.10 0.11 0.12 2 0S8000 0.96117 0.94260 092456 090703 0.89000 0344 085734 084188 082645 081162 079719 3 097059 094232 091514 088900 086384 0 83962 081630 09383 0.77218 075131 073110 0.71178 4 0S90090 092385 0.68049 085480 0 82270 0.79209 0.70290 073503 0.70543 08301 05573 083552 5 0.96147 0.90573 Q.06261 0.82193 0.78363 0.74726 0.71299 06058 064933 0.62092 0.59345 0.56743 6 094205 088797 0.8348 079031 074622 0.70496 0.88634 063017 059627 056447 0.5344 0.50663 7 093272 0 87056 08130 07502 071068 066506 082275 05834 054703 051316 048166 045235 (a) The future value in three years of $1,000 deposited today in a savings account with interest compounded annually at 8 percent. b) The present value of $5,000 to be recelved in five years, discounted at 10 percent. 9 091494 083676 076642 070259 064461 050190 054393 050025 046043 042410 039092 036061 10 80529 0.82035 074409 067558 0.61391 055839 0.50835 046319 042241 038554 0.35218 0.32197 11 080632 080426 072242 064958 058468 052679 0.47509 0 888 038753 035049 031728 028748 12 0.88745 07834 0.70138 062460 055684 04907 0.44401 039711 035553 031863 0 28584 025668 13 0 87866 077303 0.0095 060057 053032 0 46884 041496 036770 032515 020966 025751 022917 14 096 07570 0 66112 057748 050507 044230 030702 34046 02925 026333 0 23199 020402 15 086135 074301 064186 055526 048102 041727 036245 031524 027454 023909 0 20900 0.18270 16 0.85282 072845 0.62317 053391 045811 03035 033873 2918 025187 021763 0.1882 016312 17 0 84438 071416 080802 051337 0.4330 037136 031857 0.27027 023107 0.19784 0.16983 0.14564 16 0 83602 070016 0.58739 049363 041552 035034 029586 0 25025 021199 0.17986 01522 0.13004 (c) The precent value of an annuity of $9,000 per year for six years discounted at 10 percent (a) An initial investment of $14,904 is to be retuned in eight equal annual payments. Determine the amount of each paymen it the interest rare is 12 percent e) A proposed investment will provide cash fiows of $50,000, 510,000, and $7,000 at the end of Years 1, 2, and 3, respectively. Using a discount rate of 20 percent, 20 0814 7 ear1s 0 Year 2s 0 ear 3 05638 045639 0.37689 031180 025842 021455 0743 0164 01240 010367 the present value of these cash flows 21 081143 065978 0.53755 043883 035804 029416 024151 0.19666 016370 0.13513 011174 0.0925 22 0 80340 04884 0.52189 042196 0 34185 027751 022571 01834 0.15018 0.12285 0.1007 008204 23 079544 063416 0.50669 040573 032557 026180 021095 17032 013778 0.11168 00909 007379 24 .76757 062172 0.4910 039012 031007 02696 0.19715 0.157O 012640 0.10153 000170 000588 25 0.77977 060963 0.47761 037512 0 29530 023300 0.18425 0.14602 0.11597 008230 0.07351 005882 30 .74192 055207 041199 030832 023138 0.17411 13137 00938 007537 005731 00438 003338 35 070501 50003 0.35538 025342 018129 0.13011 0.09368 006763 004899 0 03558 00252 001804 40 067165 04529 0.30656 020829 14205 009722 00657 004603 003184 002209 001530 001075 ) Find the present value of an investment thet will pay $7,000 at the end of Years 10, 11, and 12. Use a discount rate of 12 percent
